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A number of so-called experts are proclaiming that gold’s price is in a bubble that has burst.  However, actual market activity signals that demand for physical gold is draining available supplies . . . .

Erste Group Research
Gold Report
11 July 2012

The foundation for new all-time-highs is in place. As far as sentiment is concerned, we definitely see no euphoria with respect to gold. Skepticism, fear, and panic are never the final stop of a bull market. In the short run, seasonality seems to argue in favor of a continued sideways movement, but from August onwards gold should enter its seasonally best phase .

USD 2,000 is our next 12M price target. We believe that the parabolic trend phase is still ahead of us, and that our long-term price target of USD 2,300/ounce could be on the conservative side.

View the complete 120 page report at:
http://www.mintstategold.com/ebay/articles/In_Gold_we_Trust_07-2012.pdf

HSBC Wednesday cut its outlook on silver prices for this year, but said that it remains "moderately bullish" on the metal and expects prices to rally later in the year amid renewed investor demand. HSBC expects silver to average . . . .

Gold demand in China, the second- largest user after India last year, may expand 13 percent to 870 metric tons in 2012, the World Gold Council said, dropping a forecast for consumption to reach as much as 1,000 tons . . . .

It has been an interesting week on the economic stimulus front with what looks like a coordinated effort by the major powers to ignite their respective economies. The European Central Bank (ECB) made the headlines with a widely anticipated cut to its key interest rate. Next up to the plate was The Bank of England (BoE) chipping in with STG50 billion. Then we have The People’s Bank of China who decided to cut its benchmark lending rate by 31 basis points to 6.0 per cent. Now we wait patiently for the next shoe to drop, which belongs to the United States . . . .

The current dislocation between gold equities and bullion has been heavily debated but, is it temporary or indicative of a fundamental change? . . . .

Last week, gold came under some strong selling pressure from traders on Comex as they managed to knock gold prices down by around $60 an ounce. The sell-off began on Wednesday when prices fell below the key support level of $1600 an ounce after, Ben Bernanke, Chairman of the US Fed announced the outcome of the US Federal Open Market Committee meeting . . . .

Many Indian investors are making a beeline for silver, and are refraining from buying gold due to its high price, though gold is expected to give a 20% return in 2012.With gold prices too hot for many in India, silver has regained its sheen. Sales of silver coins are soaring in India, with most consumers buying silver coins which . . . .

Yesterday, June 18, 2012, the FDIC distributed a rule-making notice to member banks, telling them it intends to change collateral rules, among other things. . . . .

China is widely expected to overtake India as the world’s biggest consumer of gold this year with gold purchases rising by 10 per cent, according to the leading Chinese bank ICBC. Why? . . . .